Why turn energy companies into tax collectors?
Collecting taxes and distributing subsidies shouldn't be the job of Britain's energy companies, says Merryn Somerset Webb. That's what the state is for.
You are now subscribed
Your newsletter sign-up was successful
Want to add more newsletters?
Twice daily
MoneyWeek
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
Four times a week
Look After My Bills
Sign up to our free money-saving newsletter, filled with the latest news and expert advice to help you find the best tips and deals for managing your bills. Start saving today!
One of the things we didn't get on to in the Great Debate was energy prices and how they should be kept low.
My guess is that the audience (who seemed prone to wanting to nationalise everything) would have been keen on windfall taxes, price freezes and state takeovers. But it would seem to me that the best thing we could do is to stop using the energy companies as an extension of the state.
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
All these things might be fine in one way or another. But they have nothing to do with the energy companies. You want to subsidise energy for the old and the poor? That's what the welfare state monster is for. We have it. So why don't we use it every time we find a new reason to redistribute cash from rich to the poor?
The same goes for the subsidies. They weren't mandated by the energy companies, so why make the energy companies collect and distribute them? This kind of regressive taxation (green subsidies tend to take from the masses and get paid to landowners) is surely the job of the state.
One of the things that people most want from the tax system in the UK is simplicity and transparency. Inventing new taxes and then trying to hide them behind energy company bills isn't exactly moving us along the right path.
Shifting the taxes off energy bills won't make their final cost any lower, but it will at least return their administration to the correct place. It would also make our energy bills just a tiny bit easier to understand and crucially be rather more honest.
-
ISA fund and trust picks for every type of investor – which could work for you?Whether you’re an ISA investor seeking reliable returns, looking to add a bit more risk to your portfolio or are new to investing, MoneyWeek asked the experts for funds and investment trusts you could consider in 2026
-
The most popular fund sectors of 2025 as investor outflows continueIt was another difficult year for fund inflows but there are signs that investors are returning to the financial markets
-
Beating inflation takes more luck than skill – but are we about to get lucky?Opinion The US Federal Reserve managed to beat inflation in the 1980s. But much of that was down to pure luck. Thankfully, says Merryn Somerset Webb, the Bank of England may be about to get lucky.
-
Rishi Sunak can’t fix all our problems – so why try?Opinion Rishi Sunak’s Spring Statement is an attempt to plaster over problems the chancellor can’t fix. So should he even bother trying, asks Merryn Somerset Webb?
-
Young people are becoming a scarce resource – we should value them more highlyOpinion In the last two years adults have been bizarrely unkind to children and young people. That doesn’t bode well for the future, says Merryn Somerset Webb.
-
Ask for a pay rise – everyone else isOpinion As inflation bites and the labour market remains tight, many of the nation's employees are asking for a pay rise. Merryn Somerset Webb explains why you should do that too.
-
Why central banks should stick to controlling inflationOpinion The world’s central bankers are stepping out of their traditional roles and becoming much more political. That’s a mistake, says Merryn Somerset Webb.
-
How St Ives became St Tropez as the recovery drives prices sky highOpinion Merryn Somerset Webb finds herself at the epicentre of Britain’s V-shaped recovery as pent-up demand flows straight into Cornwall’s restaurants and beaches.
-
The real problem of Universal Basic Income (UBI)Merryn's Blog April employment numbers showed 75 per cent fewer people in the US returned to employment compared to expectations. Merryn Somerset-Webb explains how excessive government support is causing a shortage of labour.
-
Why an ageing population is not necessarily the disaster many people think it isOpinion We’ve got used to the idea that an ageing population is a bad thing. But that’s not necessarily true, says Merryn Somerset Webb.
